HSTF Investigation Leads to Sentencing of Illegal Alien Drug Trafficker to 20 Years in Prison

 

This illegal alien had been deported TWICE before

The United States Department of Homeland Security (DHS) released the following statement after an investigation by the Homeland Security Task Force (HSTF), led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), resulted in the sentencing of an illegal alien who had been convicted on drug trafficking charges.

On October 1, Jose Luis Mata-Cedillo, an illegal alien from Mexico, was sentenced to 20 years in prison after he had previously been convicted for cocaine trafficking, possessing a firearm in furtherance of a drug trafficking crime, being a felon in possession of a firearm, and illegal re-entry after deportation as an aggravated felon. The investigation into Mata-Cedillo began when an HSI Task Force Officer intercepted a courier transporting 27 kilograms of cocaine bound for St. Louis, Missouri, which led to the subsequent seizure of approximately 13 kilograms of cocaine, $121,280 in cash, and a loaded 9-millimeter Glock handgun.

Following his conviction, Mata-Cedillo was turned over to the custody of the U.S. Marshals Service (USMS) and will face deportation proceedings upon his release.

Jose Mata-Cedillo

Mata-Cedillo’s criminal history includes prior convictions for TWO counts of selling, distributing, or dispensing a controlled substance, conspiracy to distribute a controlled substance, and unlawfully transporting firearms in Washington.

“This illegal alien will now spend 20 years behind bars after being convicted for cocaine trafficking, firearm charges, and illegal re-entry,” said DHS Secretary Markwayne Mullin. “Thanks to our partners through the Homeland Security Task Force, this criminal is now off our streets and will be removed from our country once his sentence is complete. We will never apologize for putting the safety of the American people first.”

Mata-Cedillo first illegally entered the United States through Texas in 2008 and was deported the same day. He then illegally re-entered the United States – a felony – at an unknown date and location. After serving his prison sentence for the prior convictions, he was deported a second time by the Trump Administration in August 2020. He then illegally entered the country for a THIRD time at an unknown date and location.

This investigation was led by HSI St. Louis.

Under President Donald J. Trump’s Executive Order 14159, DHS and the Department of Justice (DOJ) are taking a whole of government approach by setting up Homeland Security Task Forces across the nation. HSTFs will bolster the fight against organized crime as it creates a unified effort to fight the transnational criminal gangs and cartels that have led a reign of terror on our hemisphere.

Governor Hochul Announces Psychiatric Hospital Groundbreaking to Bolster Inpatient Capacity in Central New York

Statewide Health Care Facility Transformation Funding Provides $16.9 Million To Renovate Psychiatric Unit at St. Joseph’s Hospital Health Center in Syracuse

Project Will Create 22 Single and Four Double-Bed Rooms; Reflects Ongoing Commitment to Increase Inpatient Capacity

Governor Hochul announced the groundbreaking on a state-funded overhaul of the psychiatric unit at St. Joseph’s Hospital Health Center in Syracuse that will increase inpatient capacity and address safety issues. Funded primarily through a $16.9 million Statewide Health Care Facility Transformation award, the project will create 22 single-bed and four double-bed rooms and relocate the unit, allowing the hospital to provide acute mental health support for up to 30 individuals.

“Increasing inpatient psychiatric capacity statewide has been a priority for my administration, so that any New Yorker in crisis can get the mental health care they need whenever and wherever they need it,” Governor Hochul said. “This project will modernize the psychiatric unit at St. Joseph’s Health and ensure this facility can treat people in a safe, timely manner.”

The state Office of Mental Health and Department of Health joined hospital executives at the facility today to celebrate the groundbreaking. With $16.9 million in state funding, the $21.5 million project will create a centralized layout for the unit that will provide a safer, more therapeutic environment for patients.

The existing facility only has double-bed rooms, which can pose operational issues for the hospital when treating the acute psychiatric patient population. Expected to be completed in late 2027, the renovation will include single rooms that provide enhanced privacy, improved patient safety, a more therapeutic environment and more efficient care delivery for individuals experiencing serious mental health conditions.

In addition to the inpatient unit, St. Joseph’s Health is also undertaking renovations to upgrade its Comprehensive Psychiatric Emergency Program. OMH awarded $726,000 to the hospital in capital funding last summer to create more therapeutic spaces and conduct numerous upgrades to the CPEP, which serves as a primary entry point for the facility’s inpatient unit.

This summer, St. Joseph’s Health’s new psychiatry physician residency program was approved by the Accreditation Council for Graduate Medical Education, which will help address workforce needs in the Central New York Region. The four-year program is approved for six residents annually and will provide comprehensive experience in diverse clinical settings, including in the hospital’s new inpatient unit and improved CPEP, the only program of its kind in Central New York. 

Minnesota Woman Convicted in $3.6M Scheme to Defraud Medicaid Housing Services Program

 

A federal jury in St. Paul convicted a Minnesota woman for executing a scheme to steal $3.6 million from the now-defunct Minnesota Medicaid Housing Stabilization Services (HSS) Program.

“The Fraud Division has arrived in Minnesota — and we are here to stay,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “The jury’s guilty verdict in this case sends a clear message that those who steal from programs meant to help our most vulnerable will be held accountable. As proven at trial, Meadows falsified records to enrich herself while preventing critical services from reaching those in need. Her fraud scheme — and others like it — forced Minnesota’s Housing Stabilization Services Program to shut down entirely after costs of the program outran estimates by four thousand percent. I commend the dedicated prosecutors, agents, and support staff who worked tirelessly to deliver justice in this case.” 

“The defendant chose to defraud millions from a program meant to help vulnerable Minnesotans,” said U.S. Attorney Daniel N. Rosen for the District of Minnesota. “My office is committed to prosecuting those who steal from the American taxpayer.”

According to court documents and evidence presented at trial, Sharmaine Meadows, 45, of Lake Elmo, Minnesota, orchestrated a scheme to bill the HSS Program for housing services that were meant to transition the unhoused and assist them in sustaining that housing. Instead, these services were not actually provided. The HSS Program permitted providers to bill up to 150 hours for transitional services and 150 hours for sustaining services per eligible Medicaid beneficiary. Meadows routinely emphasized to her employees that they were required to maximize the billings to that 150-hour cap, even if the hours of services were never provided.

Agenda from Meadows’ company staff meeting in July 2022 at which “Maximizing of Hours” was discussed

The evidence presented at trial also proved that Meadows and her company billed the HSS Program for in-person hours supposedly provided by employees who were in other states, like Illinois, and in other countries, like the Philippines, where the defendant paid only $6.00 per hour and explicitly offered no benefits. 

Employment Offer Letter from Meadows’ Company to Individual in the Philippines.

She also submitted claims for services that could not have been provided because beneficiaries were in the hospital. And through data analysis, evidence showed that Meadows billed as if her employees were working more than 20 hours per day, every day, for weeks. 

Summary of billing for “Impossible Days” by Meadows’ company.

Summaries of billing for “Impossible Days” by Meadows’ company.

At the same time, Medicaid beneficiaries testified that they received little to no services from Meadows’ company. These beneficiaries testified that they were routinely told by Meadows’ employees that despite having received no assistance, they had run out of available hours in the HSS Program. 

As a result of the fraud scheme, the HSS Program paid Meadows’ company over $3.6 million between 2020 and 2025 into accounts that Meadows exclusively controlled.  

The jury convicted Meadows of three counts of health care fraud. She is scheduled to be sentenced at a later date and faces a maximum penalty of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Colin M. McDonald of the Justice Department’s Fraud Division; U.S. Attorney Daniel N. Rosen for the District of Minnesota; Special Agent in Charge Christopher D. Dotson of the FBI Minneapolis Field Office; Special Agent in Charge Thomas Ethridge of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Adam Jobes of the IRS Criminal Investigation (IRS-CI), Chicago Field Office, made the announcement

FBI, HHS-OIG, and IRS-CI investigated the case.

Trial Attorneys Brant Cook and Emily Reeder-Ricchetti of the Fraud Division’s Health Care Fraud Section, with the assistance of Health Care Fraud Section Trial Attorney Jody King and Assistant U.S. Attorney Matthew Murphy for the District of Minnesota, are prosecuting the case.

On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

D.A. Bragg: Owner Of Au Jus Restaurant Indicted For Wage Theft

This is an Ongoing Investigation, Call (646) 712-0298 If Your Wages Were Stolen 

Manhattan District Attorney Alvin L. Bragg, Jr., announced the indictment of PATRICK GRIFFIN, 71, owner of barbecue restaurant Au Jus, for allegedly stealing at least $8,000 in wages from five of his employees. GRIFFIN is charged in a New York State Supreme Court indictment with one count of Grand Larceny in the Third Degree by Wage Theft, one count of Scheme to Defraud in the First Degree, and two counts of Failure to Pay Wages in Accordance with the Labor Law. [1]

“As alleged, Patrick Griffin, owner of the popular Au Jus restaurant, took advantage of his workers and stole their hard-earned wages while they provided physically demanding labor. Griffin was allegedly vacationing in Europe while his employees were begging him for their money that they earned and need to support their families,” said District Attorney Bragg. “An honest day’s work deserves an honest day’s pay, and we will prosecute bad bosses who deprive their workers of wages. This investigation is ongoing – if your wages were stolen, please call or message our helpline at (646) 712-0298, regardless of your immigration status.”

As alleged in court documents and statements made on the record, between 2019 and 2025, GRIFFIN owned and operated Au Jus, an Oklahoma style barbecue restaurant chain in Manhattan. The restaurant had three locations: 4232 Broadway, 1569 Lexington Avenue, and 2621 Broadway.

Beginning in January 2025, GRIFFIN allegedly engaged in a pattern of wage theft against his workers. He deprived Au Jus workers of days or even weeks of wages after they performed labor in his restaurants, including physically demanding tasks such as preparing food, washing dishes, and making deliveries. When workers complained to GRIFFIN, he reassured them with false promises of repayment. Eventually, each of the workers fell further behind on their own financial obligations and were forced to seek new employment. GRIFFIN responded by replacing them and continuing this pattern with new employees.

After leaving the restaurant, some former Au Jus workers continued trying to recoup their wages. GRIFFIN often ignored these text messages, including while vacationing in Europe, and in at least one instance, blocked the worker’s phone number.

Rather than repay these minimum-wage workers, GRIFFIN imposed new conditions on them as a purported means of recovering their wages. In one instance, GRIFFIN told a former employee that he would not be paid unless he and his coworkers returned to work at the restaurant. When the worker returned to work, GRIFFIN continued withholding his wages, and the worker was forced to leave again. In another instance, GRIFFIN demanded that a worker sign a document that falsely claimed he did not have government-issued identification. When the worker refused to sign the false document, GRIFFIN withheld his wages. Even if workers satisfied his conditions, GRIFFIN continued to withhold their wages.  

After many unsuccessful attempts to recover their wages, GRIFFIN’s conduct was reported to the Worker Protection Unit hotline. More than one year after the work was performed, five workers are still owed over $8,000 in wages.

D.A. Bragg thanked the New York State Department of Labor for providing assistance in this investigation.

Charged:

•   Grand Larceny in the Third Degree by Wage Theft, a class D felony, one count
•   Scheme to Defraud in the First Degree, a class E felony, one count
•   Failure to Pay Wages in Accordance with the Labor Law, a class A misdemeanor, two counts

[1] The charges contained in the indictment are merely allegations and the defendant is presumed innocent unless and until proven guilty. All factual recitations are derived from documents filed in court and statements made on the record in court.

Consumer Alert: New York Department of State’s Division of Consumer Protection Offers Tips to Help New Yorkers Cut Winter Heating Costs

 

Resources are Available to help New Yorkers Weather the Cold Months

Long Winters Can Become an Economic Burden for New Yorkers

Secretary Mosley said: “As we approach the 2026 winter season, the NYS Division of Consumer Protection offers valuable information on available resources to help insulate your homes and wallets from the cold weather.”

The New York State Division of Consumer Protection is providing resources and tips to help mitigate high energy bills this coming winter. As the weather cools, New Yorkers turn up their thermostats and increase energy use. At a time when every penny counts, the Department of State’s Division of Consumer Protection (DCP) is sharing resources to help New York households weather the cold months.

“Long winters can become an economic burden for New Yorkers who normally experience an increase in their energy bills, and may create upheaval in daily budgets,” said Secretary of State Walter T. Mosley. “As we approach the 2026 winter season, the NYS Division of Consumer Protection offers valuable information on available resources to help insulate your homes and wallets from the cold weather.”

ENERGY AND BILL ASSISTANCE PROGRAMS:

• Energy Affordability Program (EAP): In September, Governor Hochul announced that half of all New York households are now eligible for relief through the Energy Affordability Program and the program has received over 38,000 applications in the last three weeks alone. New Yorkers should check eligibility guidelines and apply online via gov/EAP.
• Home Energy Assistance Program (HEAP) benefit is available for eligible New Yorkers. Visit the NYS Office of Temporary and Disability Assistance website to learn more.
• Additional State Assistance Programs: Programs include direct assistance to pay bills, low-interest loans for home energy efficiency projects, and assessments for energy efficiency upgrades for both homeowners and renters. Explore these resources and programs by visiting the NYS Energy Research and Development Authority (NYSERDA).

COMMUNITY RESOURCES:

DCP has free resources to assist New Yorkers with their budgets, including:

• Money Savings Guide, offering more than 75 tips designed to help New Yorkers reduce everyday expenses, including energy bills and ideas on how to stretch their household budgets.
• Home Heating with Oil and Propane Guide, provide shopping guidance and help heating oil and propane fuel consumers reduce their heating bills.
• Community Workshops: The DCP Education and Outreach team is available to present Managing Utility Costs, which is an informative workshop available to be delivered both in person and via webinar. This presentation provides information about consumer rights, bill payment options, and financial assistance to help manage utility costs. Our webinars and workshops offer opportunities for live question and answer sessions. To learn more, please visit DCP’s Education and Outreach Program.

ENERGY-SAVING TIPS:

• Check Your Thermostat: Each degree you lower your thermostat can reduce fuel consumption by approximately 3%. Installing a programmable thermostat can automatically adjust the temperature based on your home, work, and sleep schedule and provide an estimated cost savings of 10-20% on your monthly heating and cooling bills.
• Improve Your Water Heater’s Efficiency: Water heating accounts for about 14% of your energy bill. Wrapping your water heater in insulation, lowering water temperatures, insulating hot water pipes, and limiting hot water use can all decrease your energy bill.
• Weatherize and Insulate Your Home: Help your home to retain heat during cold weather by insulating your attic and outside walls, sealing and insulating heating ducts, removing window air conditioners, wrapping wall air conditioners, and sealing any cracks around walls and windows.
• Get Your Heating System Tested and Tuned: Conduct annual checkups to help ensure the efficiency of your system. Replace your furnace filters at least every three months to keep your equipment running efficiently and consider replacing the filters once a month during heavy-use months such as the summer and winter.
• Use Radiators Efficiently: Move rugs and furniture away from heating vents and radiators. Blocked ducts can disrupt air circulation and cause an imbalance in a home’s heating system. Placing heat-resistant reflector panels between radiators and walls can help heat the room instead of the wall.
• Use Appliances Efficiently: Conserve energy with larger appliances, like setting your refrigerator no lower than 38-40 degrees and loading your dishwashers and washing machines to full capacity. Appliances with the EnergyStar label can save you 20% or more on your energy bills. To learn more about EnergyStar, visit their website.
• Get a Home Energy Audit: Conduct an energy audit of your home or apartment to determine where you can correct any problems or inefficiencies. Contact NYSERDA at Home Energy Assessment, energy audit, audit, home audit, home energy plan | NYSERDA for more information.
• Shut down your computer: Even in sleep mode, your computer can cost you over $100 a year! Don’t forget to turn off the monitor, it can use twice as much energy as the computer. Use an advanced power strip so that all computer accessories can be turned off with a single switch.
• Use rechargeable batteries and charging units: Rechargeable batteries are more cost-effective in the long term. Plug your battery charging system into a power strip to enable you to shut off power with the flick of a switch. For even more savings, use a power strip with a timer or a programmable power strip.
• Disconnect digital media players: Even when switched off, most electronics continue to draw power if they remain plugged in, often referred to as ghost electricity, vampire power or phantom power. To save energy, plug entertainment products such as game consoles, audio and video players into an advanced power strip to turn them all off when they are not in use.
• Stream smarter: Streaming content through a game console uses up to 10 times as much energy as streaming on a laptop or tablet. Consider using another kind of device to stream—like a Blu-ray player, set-top box or Smart TV that has earned an ENERGY STAR® label.

For more information on New York State home heating assistance and energy efficiency programs, visit NYSERDA at www.nyserda.ny.gov/All-Programs/Home-Energy-Efficiency-Upgrades, NYS Department of Public Service at consumer-assistance-program-2025-26-final11-25.pdff or NYS Homes and Community Renewal at www.hcr.ny.gov/weatherization. For the Home Energy Assistance Program (HEAP) visit the Office of Temporary and Disability Assistance at www.otda.ny.gov/programs/heap/. 

About the New York State Division of Consumer Protection

Follow the New York Department of State on Facebook, X and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics. Sign up to receive consumer alerts directly to your email or phone here.

The New York State Division of Consumer Protection provides voluntary mediation between a consumer and a business when a consumer has been unsuccessful at reaching a resolution on their own. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumer-protection. The Division can also be reached via X at @NYSConsumer or Facebook.

Speaker Menin and Council Members Pass New Legislation to Support Small Businesses Dealing with Financial Impacts of City Construction

 

Council also approves measure to create new centralized database cataloguing all towed vehicles that will include search function and opt-in notifications

Council also designates Little Yemen as official cultural district

The New York City Council approved new legislation that will provide targeted support for small local businesses that have been impacted by City construction projects. The bills will require the Department of Small Business Services (SBS) to create a designated fund for small retail businesses affected by roadway construction and call upon the New York State Legislature to institute a tax credit for impacted businesses.

New York City’s Department of Transportation (DOT) maintains more than 6,300 miles of streets and highways across the five boroughs, all of which require periodic construction to ensure New Yorkers can travel safely and smoothly from point A to point B. Currently, there are more than 3,500 DOT authorized street and roadway construction closures, affecting over 1,880 blocks citywide, covering everything from paving and milling projects to utility work and equipment placement. For small businesses, street closures can mean anything from lower foot traffic, obstructions, and lower visibility to noise pollution and environmental changes that might deter potential customers. The new SBS fund intends to help counteract those negative impacts through direct support for local retail.

“Small businesses are the lifeblood of our communities, which is why we must make them easier to sustain in our city,” said Speaker Julie Menin. “And while city infrastructure projects are necessary to upgrade our streets and improve our quality of life, road closures and obstructions can cause devastating revenue losses for local shops, restaurants, and businesses. New York’s business owners should not be left to deal with those challenges alone, which is why we’re establishing a new fund that will support businesses through those losses, and we’re calling upon the State to do the same. At a time when New York has lost thousands of businesses to other cities across the country, our city must take proactive steps to support them.”

In addition to the small business fund, the Council also approved a measure to create a centralized database that will allow vehicle owners to search and locate their towed vehicles across all City and privately owned tow operators. Vehicle owners would also be able to opt-in to receive notifications when their vehicle is entered into the system.

Supporting Small Businesses Impacted by City Construction Projects

Introduction 799, would require the Department of Small Business Services (SBS) to establish a support fund for small retail businesses affected by roadway construction

Resolution 328, would call on the New York State Legislature to pass, and the Governor to sign, legislation providing a tax credit to businesses negatively affected by infrastructure construction.

Studying Barriers to Early Elementary Gifted and Talented Programs

Introduction 684, would require the Mayor’s Office of Child Care and Early Childhood Education, in consultation with the Department of Education and community-based early childhood organizations, to study how language access needs and geographic location affect preschool-age children’s access to early elementary gifted and talented programs.

Creating Centralized Towed Vehicles Database

Introduction 489-A, would require the Department of Finance to create a centralized online database and notification system for vehicles towed by City entities or private tow operators. This bill would consolidate information across agencies and outside operators into a single searchable database and allows vehicle owners to opt in to notifications when their vehicle is entered into the system.

Declaring October as Hindu American Awareness and Appreciation Month

Resolution 646, would declare October as Hindu American Awareness and Appreciation Month in the City of New York.

Designating Little Yemen as a Cultural District

Resolution 458, would call on the Governor to sign S.6487C/A.7033D to empower the New York State Council on the Arts to designate Little Yemen as a cultural district.

Land Use:

Sojourner Truth Mapes Rezoning – An application by Phipps Houses and the 2136 Crotona Parkway Housing Development Fund Corporation for a zoning map amendment to rezone from an R7-1 and R7-1/C-4 District to R8 and R8/C2-4 District, and a text amendment to establish an MIH area to facilitate the development of two new 100% affordable residential buildings with 457 units in Council Member Oswald Feliz’s district.

158-06 Northern Boulevard Rezoning – An application by Northern 158 Holding LLC for a zoning map amendment to rezone from an R5B/C1-2 to an R7A/C2-4 district and from an R2 district to R7A and R7A/C2-4 district, and a text amendment to map an MIH area to facilitate the development of a new nine-story mixed-use development with approximately 76 dwelling units, 19 of which will be permanently affordable pursuant to MIH Option 1, and retail space in Council Member Sandra Ung’s district. The Council is modifying this application to remove a portion of the rezoning area not owned by the applicant.

69-67 108th Street Rezoning – An application by 108 ST., LLC for a zoning map amendment to rezone from an R1-2A district to an R7D/C2-4 district and a text amendment to map an MIH area to facilitate the development of a new 11-story mixed-use building with approximately 59 residential units, up to 15 of which will be permanently affordable, in Council Member Lynn Schulman’s district. The Council is modifying this application to strike MIH Option 2 and add MIH Option 3.

21-31 46th Avenue Rezoning – An application by 21-31 Holdings LLC for a zoning map amendment to rezone from an M1-4/R6B district to an R7X/C2-5 district and a text amendment to map an MIH area to facilitate the development of a new 11-story mixed-use building with approximately 70 residential units, up to 18 of which will be permanently affordable, as well as ground floor community facility or commercial space in Council Member Julie Won’s district. The Council is modifying this application to strike MIH Option 2 and add MIH Option 3, which will ensure deeper affordability.

132 Melrose Street Rezoning – An application by Melrose Towers Corp. for a zoning map amendment to rezone from an M1-1 district to an M1-2A/R6A (MX-22) Special Mixed-Use District and a text amendment to map an MIH area to facilitate the development of a six-story mixed-use residential and commercial building with 18 dwelling units, five of which will be income-restricted pursuant to MIH Option 1, in Council Member Jennifer Gutierrez’s district. The Council is modifying this application to strike MIH Option 2.

Fort Hamilton Mews Rezoning – An application by 9305 5th Ave LLC for a zoning map amendment to rezone from an R6B/C2-3 (BR) district and an R5B (BR) district to an R7X/C2-4 (BR) district, and a text amendment to map and MIH area to facilitate the development of an 11-story mixed-use building with 292 residential units, up to 88 of which will be permanently affordable pursuant to MIH, as well as 200 parking spaces and commercial and community facility space in Council Member Kayla Santosuosso’s district. The Council is modifying the application from an R7X district to an R7D district and to add MIH Option 1.

Two applications in Council Member Lincoln Restler’s district:

Park Avenue Brooklyn Rezoning – An application by Park Avenue Rezoning Partners for a zoning map amendment to rezone from M1-1 and M1-2 district to M1-4/R7D Special Mixed-Use District 4 and a text amendment to map an MIH area to facilitate ten new developments, including four education institutions serving 2500 students and six mixed-use residential buildings with 391 units, 91-117 of which will be permanently income-restricted. The Council is modifying this application to strike MIH Option 2 and add MIH Option 3.  

289 Kent Avenue Rezoning – An application by Web Holdings LLC for a zoning map amendment to rezone from an M3-1 district to an M1-3A/R7X Special Mixed-Use District and an M1-2A district, and a text amendment to map an MIH area to facilitate the development of one new 18-story mixed-use building with 278 dwelling units, approximately 56-83 of which will be permanently income-restricted pursuant to MIH. The Council is modifying this application to strike MIH Option 2 and add MIH Option 3.

Finance:

Preconsidered Resolution, sponsored by Council Member Linda Lee, would establish a full 40-year, Article XI tax exemption for two buildings in the districts of Council Members Eric Dinowitz and Oswald Feliz.

Preconsidered Resolution, sponsored by Council Member Linda Lee, would establish a full 40-year, Article XI tax exemption for one building in Council Member Shahana Hanif’s district.

Justice Department and FBI Seize Vulnerability Scanning and Spear Phishing Tools Operated and Used by China-State Sponsored Hackers

 

“Flax Typhoon” Actors Associated with Integrity Technology Group Used “Microscan” and “FishHub” To Target Critical Infrastructure and Other Networks

The Justice Department and FBI announced court-authorized seizures to deny malicious cyber actors access to two hacking tools, “Microscan” and “FishHub,” used to scan and, in some cases, hack, U.S. and foreign critical infrastructure systems and other networks. As alleged in court documents unsealed in the Western District of Pennsylvania, malicious cyber actors working for Integrity Technology Group (Integrity Tech), a company based in the People’s Republic of China (PRC), operated and used the tools. Integrity Tech has contracts with the PRC government.

“The United States will not allow China or its proxies to operate against United States interests with impunity in cyberspace,” said Assistant Attorney General for National Security John A. Eisenberg. “The National Security Division will continue to respond decisively and use every tool at our disposal to disrupt the Flax Typhoon threats, dismantle the infrastructure sustaining them, and protect the critical networks that power our daily lives and on which our Nation’s security depends.”

“These state-sponsored hackers continue to aggressively target and access networks and systems throughout the world in an effort to identify and steal files and otherwise exploit victims’ vulnerabilities,” said U.S. Attorney Troy Rivetti for the Western District of Pennsylvania. “These seizures, our second disruption of Integrity Tech’s massive operations in as many years, send another clear message to cybercriminals from the PRC and elsewhere of the Department’s dedication to defending and maintaining cybersecurity in the United States and abroad.”

“Integrity Technology Group provided China-linked threat actors with capabilities used to conduct widespread vulnerability scanning and, in some cases, intrusions targeting U.S. and foreign critical infrastructure,” said Assistant Director Brett Leatherman of the FBI’s Cyber Division. “The PRC relies on contractor and enabling companies to expand the reach and scale of its malicious cyber activity. By exposing and disrupting these enablers, we make it harder for the PRC to target American networks and infrastructure.”

“These seizures underscore the FBI’s unwavering commitment in disrupting PRC state-sponsored cyber criminals who threaten our critical infrastructure and national security,” said Special Agent in Charge Mark Remily of the FBI San Diego Field Office. “FBI San Diego and our law enforcement partners around the world will continue to employ the full force of our investigative authority to protect the American people and safeguard our networks from malicious foreign cyber actors.”

According to court documents, Integrity Tech created and used a botnet of internet-of-things devices infected with a variant of Mirai malware. Among other things, this botnet facilitated Integrity Tech’s computer vulnerability scanning using Microscan. Integrity Tech developed Microscan to conduct reconnaissance, via the botnet and otherwise, of victim computer networks for vulnerabilities that its clients would later exploit. Targets of Microscan vulnerability scanning include a U.S. power company based in South Carolina, a multi-national Non-Governmental Organization, Japanese and Polish airports, Taiwanese critical infrastructure companies in the natural gas and power sectors, and two Taiwanese universities. Integrity Tech accessed Microscan through one of the seized domains, c0cc[.]cc. 

A second Integrity Tech tool, FishHub, is alleged to have facilitated the exploitation of computer networks through spear phishing. After an initial network compromise, FishHub downloaded additional malware to the victim network. This malware provided Integrity Tech’s clients with unauthorized remote access to the victim network or searched for specific files and sent them to servers controlled by Integrity Tech. Confirmed victims of FishHub activity included approximately 20 Taiwanese universities. Five of the seized domains helped deliver this malware: 98aicai[.]com, 98aicode[.]com, outlook3650[.]com, youtubecard[.]com, and linkedinns[.]net. 

This action marks the Department’s second public technical disruption of Integrity Tech’s hacking infrastructure. In September 2024, the Justice Department announced the court-authorized disruption of Integrity Tech’s Mirai malware botnet which consisted of more than 200,000 consumer devices in the United States and worldwide. In conjunction with the seizures announced today, the FBI, along with other U.S. and foreign-partner agencies, published a cyber security advisory. This advisory provides indicators-of-compromise associated with Integrity Tech intrusion activity and is designed to help network defenders identify and respond to Integrity Tech’s malicious activity. 

The FBI San Diego and Baltimore Field Offices are investigating the case, in coordination with the FBI’s Cyber Division.